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Report
Sustainability
2025 Kenco
Reflections from Denis About Kenco Kenco’s Sustainability Strategy 2025 Progress Highlights Environmental Social Governance Looking Ahead Contact Us
About Kenco
Kenco’s Sustainability Strategy Our Process & Approach Alignment with UN SDGs
Environmental Greenhouse Gas Emissions and Energy Management 2024 GHG Emissions LED Lighting Retrofits Environmental Compliance Waste and Water Management Environmental Metrics: Performance & Progress
2025 Progress Highlights
Social Introducing Kenco Community and Culture A Culture of Belonging Showing Up For Our Community Workforce Health and Safety Building a Safety Culture Safety Metrics: Performance and Progress Employee Engagement and Development Leadership Development Social Metrics: Performance & Progress
Governance Business Ethics and Integrity Data Privacy and Data Security Critical Incident Risk Management
Looking Ahead
Contact Us
Reflections from Denis
from Denis
Reflections
As I reflect on the past year, I am proud of the progress Kenco has made in advancing our sustainability journey. For us, sustainability has never been about a single initiative—it is a continuous commitment that touches every part of our business. From our warehouses to our communities, from our people to our partnerships, we strive to operate with integrity, transparency, and purpose. 2024 was a year marked by measurable gains. We diverted nearly 20% of waste from landfills, expanded LED lighting across our facilities, and strengthened our employee safety culture with new programs like Mind on Task. We also launched new Community and Culture field chapters to ensure every associate feels connected and supported, while contributing over 2,700 volunteer hours to local communities, a 51% increase from 2023. But our Annual Sustainability Report reflects more than metrics—it reflects our values and our outlook on what it means to be a sustainable, resilient organization today and as we grow. In 2024, Kenco added around 900 employees and expanded operations with a net increase of approximately 15 new warehouse locations. As our footprint expands, so does the reach of our sustainable principles, guiding each new site in how to adopt and improve their Environmental, Social, and Governance outputs. Looking ahead, we will continue to invest in technologies, partnerships, and people that help us reduce our footprint and strengthen our sustainability platform across our organization. We also remain committed to transparency in reporting and building the data foundation that will guide the next phase of action. I am grateful to our associates, customers, and partners who make this work possible. Together, we are building a stronger, more sustainable Kenco—one that delivers operational excellence today and creates lasting impact for generations to come. Denis Reilly President & CEO, Kenco
Our purpose is to empower our team members to proudly serve our clients by delivering excellence every day.
Our vision is to innovate relentlessly, delivering integrated logistics solutions on a national scale with the attention of a local partner.
Our mission is to be our clients’ most trusted and preferred supply chain partner.
We’re proud of our recent awards and accomplishments, highlighting our ongoing leadership in logistics and sustainability.
For Kenco, sustainability is not a single initiative but a continuous commitment that integrates Environmental, Social, and Governance (ESG) priorities into our business. In the spirit of transparency, this report highlights the progress we’ve made in advancing safe workplaces, strengthening our communities, protecting the environment, and building long-term economic resilience.
Purpose
Vision
Mission
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Our Process & Approach
Alignment with UN SDGs
Kenco's Sustainability Strategy
At Kenco, we are committed to enabling sustainable development within our company and the logistics industry. We appreciate the responsibility we feel as an organization to foster healthy and engaged workspaces, support our local communities, ensure ethical business practices, and embed environmental stewardship across our operations. We recognize the impacts our business can have on people and the environment, and we are focused on leveraging innovative solutions to drive sustainable objectives. Through creative collaboration, we thoughtfully engage our stakeholders to deliver intentional and meaningful strategies that will support social well-being, environmental awareness, and holistic economic growth across supply chains.
Our Process and Approach
Social
Community and Culture
Workforce Health and Safety
Employee Engagement and Development
Governance
Business Ethics and Integrity
Data Privacy and Data Security
Critical Incident Risk Management
Environmental
GHG and Energy Management
Waste and Water Management
Environmental Compliance
We identified the following significant ESG material topics for our organization and our stakeholders:
Our ESG strategies are anchored in these material topics. Strategic oversight comes from a cross-functional ESG Steering Committee, and day-to-day implementation is led by our Sustainability Manager.
Reviewing and Finalizing Material Topics
Analyzing Data
Engaging Stakeholders
In 2024 we conducted a materiality assessment aligned with leading sustainability frameworks, including SASB Standards, the Global Reporting Initiative (GRI), and the UN Sustainable Development Goals (SDGs).
Mapping ESG Topics and Stakeholders, Including Customers, Employees, Suppliers, Investors, and Our Communities
The process followed four key steps:
Kenco aligns its sustainability commitments with the United Nations Sustainable Development Goals (UN SDGs), a shared blueprint for building a more sustainable future. Our initiatives contribute directly to several of these global goals. The full set of SDGs is outlined below, and throughout this report we highlight the goals where our efforts are making the greatest impact.
Buyers who are surprised by the shorter time frame may be more intrigued by an offer of faster shipping times!
Less weeks between the two milestones also means less pay periods for consumers. In an already inflation-focused market, there may be less cash to go around.
More consumers than usual are likely going to be looking for deals and bargains this holiday season. Kenco foresees retailers and their logistics partners using a similar approach, ensuring they are offsetting higher prices with added-value offerings, cheaper shipping options and easier return policies.
TAKEAWAY
For consumers, price is everything
Higher prices mean savvy shoppers
Shipping and logistics are at the forefront for consumers
Overall shipping sentiment is on the rise
Reverse logistics is strengthening consumer sentiment
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eCommerce shopping continues to be supported by ever-improving, efficient shipping. Kenco encourages retailers and their logistics partners to continue to optimize their end-to-end processes through innovative technologies like automation.
TIPS FROM THE EXPERTS
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Kenco’s Value-added eCommerce Solutions
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Community & Culture: Launched new field chapters to support belonging and representation. Volunteer Outreach: Associates contributed 2,721 volunteer hours, up 51% year-over-year. Safety Performance: OSHA Total Recordable Incident Rate (TRIR) improved to 2.70, continuing to outperform the industry average.
Governance: Strengthened our rules, processes, and procedures by updating and drafting key policies, preparing for SOC II certification, and implementing incident detection and response software.
Waste Diversion: Increased diversion from landfill by 21.8% since 2023. Fleet Electrification: 78% of material handling equipment is now electric. Energy Efficiency: LED lighting installed in 87% of warehouses leased and operated by Kenco.
Environmental Performance and Compliance
Resource Management
Greenhouse Gas Emissions and Energy Management
Energy Efficiency and Sustainability in Action
At Kenco, we remain committed to positive environmental impact. Through effective and transparent monitoring of key environmental performance indicators, we've identified opportunites to track fleet electrification, promote energy efficency in our facilities, and reduce waste.
In 2024, we focused on cleaner operations and improving energy efficiency in our facilities, while continuing to track and measure our greenhouse gas (GHG) emissions.
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Greenhouse Gas Emissions & Energy Management
2024 GHG Emissions
LED Lighting Retrofits
Driving Sustainable Automation with GreyOrange
Through our collaboration with GreyOrange, a leader in robotic warehouse automation solutions, Kenco deployed nine robots for one of our customers. These robots, powered by lithium-ion batteries, replaced conventional lead-acid trucks, helping create cleaner, more sustainable fulfillment operations.
Automation and Efficiency
Kenco 2024 Emissions
Metric Tons of CO2 -e
We continue to enhance our methodology for collecting and tracking data for our Scope 1 and 2 emissions. In addition to our comprehensive internal systems, we use Schneider Electric's Resource Advisor platform to ensure accurate measurement of utility consumption across all sites.
10,159 27,800
Environmental compliance is critical to our operations and our communities, and we strongly feel it is our ethical responsibility to protect our ecosystems.
In 2024, Kenco’s waste reduction programs diverted 2,037 tons of waste from landfills, a 21.8% increase from 2023 levels. A few of our initiatives include: Recycling at warehouse facilities Implementing smart sensors and monitors on trash compactors and dumpsters Repurposing operational byproducts
Turning Scrap into Space: Building Kamp Kenco
One unique and creative way we breathed new life into our operational waste was in the creation of Kamp Kenco. Kamp Kenco was built from the ground up by Kenco employees, using over 3,000 pounds of leftover crate wood. Today, it serves as a dedicated area for safety and operational training, town halls, Employee Community Network meetups, and even the occasional impromptu jam session.
Scope 1 & 2 Emissions
Waste Diversion from Landfills
LED Utilization in Our Leased and Operated Warehouses
MHE Electrification Across Portfolio
Total Energy Usage
2024
2023
% Change YoY
37,959 tCO2e
33,689 tCO2e
+13.5%
87%
75%
+15.6%
78%
82%
−5.12%
2,037 tons (19.85%)
1,673 tons (18.88%)
+21.8%
148,296,763 kWh
134,887,905 kWh
+10.6%
Carbon Intensity
0.028 tCO2e/$1000 operational revenue
0.030 tCO2e/$1000 operational revenue
-4.84%
Environmental Metrics: Performance & Progress
A 2023 lighting survey identified that 75% of Kenco’s leased and operated warehouses utilize LED lighting fixtures. Our aim was to reach 80% by 2026, but we’re pleased to announce we surpassed this in 2024, reaching 87% of our warehouses. We continue to conduct retrofit assessments across our facilities, making upgrades as needed.
It remains one of Kenco’s material priorities. We continue to monitor and adhere to applicable laws and environmental regulations, such as stormwater pollution prevention and proper hazardous material handling. At applicable locations, associates participate in comprehensive and interactive training curricula that address specific compliance requirements such as Hazard Communication, DOT (HAZMAT), stormwater management, hazardous waste (RCRA), and oil discharge prevention (SPCC).
To further advance our resource efficiency efforts, we utilize Resource Advisor to monitor water usage across our operations. This improved visibility enables transparency in our water management practices and supports future efficiency and conservation strategies.
Waste Management
Water Management
Reduction in kWh Energy Use*
30%
*Reflects energy savings at two facilities following recent LED lighting upgrades.
Generating More Value with Less Carbon
In 2024, our carbon intensity improved by 4.84% year-over-year, decreasing from 0.030 to 0.028 tCO2e per $1000 of operational revenue, a reflection of our focus on energy efficiency as Kenco continues to grow
Cultivating Community and Culture
Strength in Community and Culture
At Kenco, the strength of our business comes from the strength of our people and communities. We embrace Community & Culture as an intentional way of ensuring that Kenco remains a place where people feel connected, supported, and proud to be part of the team for the next 75 years and beyond.
At Kenco, our people are the foundation of everything we do. When employees feel connected, empowered, and valued, they bring their best selves to work—and that energy fuels stronger teams, partnerships, and results. Our approach includes strengthening trust and psychological safety, helping employees grow through talent development, creating meaningful moments of belonging, and deepening connections with the local communities where we live and work. We continue to build on the strong foundation established across our sites, elevating our standards for what it means to create a healthy, inclusive, and high-performing workplace. To date, we have launched two Community and Culture field chapters—including one at the corporate level—and plan to launch additional chapters soon.
A Culture of Belonging
Showing Up For Our Community
At Kenco, we are committed to fostering a workplace where employees of all backgrounds feel valued, supported, and connected. Our focus is on building a strong community and culture that enables every team member to contribute fully and thrive. Our Employee Community Networks play a vital role in this mission. Through regular meetings, panels, and open discussions, these networks bring together both employees with shared experiences and allies who want to learn and support one another.
Our Veterans’ ECN - HEROES (Honor, Empower, Resource, Outreach, Engagement, Service)
MISSION: Facilitate focused, positive interactions amongst our veterans & those interested in or involved with the military community.
Kenco Women Igniting Change
MISSION: Cultivate & sustain an environment where women thrive at Kenco through connection, development, and discussion.
Leveraging Inclusion for Transformation
MISSION: Foster a diverse, inclusive workforce that fully represents all cultures, backgrounds and viewpoints.
We are committed to ensuring that employees of all backgrounds have opportunities to contribute, be heard, and grow within the organization—and our progress reflects that commitment. Since 2020, we have increased the percentage of female employees across nearly every job function in the organization.
Data as of 12/31/2024
Kenco Diversity 2024
Percent Female by Job Grouping Trend
Diversity by Kenco Job Grouping
In 2024, Kenco employees contributed 2,733 volunteer hours, a 51% increase from 1,801 in 2023.
Showing Up for Our Community
Our people are the foundation of our success, and their safety and well-being remain our highest priority. We are committed to fostering a workplace where everyone feels protected, supported, and empowered to contribute safely. By investing in strong safety systems, training, and a culture of care, we aim to create an environment where health and safety are shared responsibilities and integral to our everyday operations.
Building a Safety Culture
Safety Metrics: Performance and Progress
Safety First: Kenco Launches ‘Mind on Task’ Campaign
At Kenco, the health, safety, and well-being of our people come first, which is why we continue to invest in programs that strengthen our safety culture. 2024 built upon our already strong safety foundation with the introduction of the Mind on Task safety campaign and the implementation of a new incident management software, Gensuite Benchmark.
In 2024, Kenco launched its Mind on Task safety campaign. The program focused on storytelling, peer-to-peer learning, and the application of “safety resets” and “snap back” skills—a technique that helps associates refocus and heighten concentration during high-risk or fatigue-prone tasks. By encouraging associates to pause, reset, and re-engage mentally before beginning work or performing such tasks, the initiative helped reduce potential serious injury and fatality events both at work and at home. The initiative generated more than 30,000 engagement activities—ranging from safety huddles to personal reflections—and contributed to Kenco’s lowest OSHA Total Recordable Incident Rate (TRIR) in over five years, outperforming the warehousing industry by 57%
OSHA Total Recordable Incident Rate (TRIR) % of Sites with No Lost-Time Incidents Experience Modification Rating
2.95
2.70
73.8%
71.6%
0.90
0.95
Our MCS Perris II facility celebrates 1,000 days incident-free!
Our OSHA Total Recordable Incident Rate (TRIR) improved to 2.70 in 2024, and continues to outperform the industry average. These results underscore both the effectiveness of our safety programs and the strong engagement of our employees.
Our goal is to foster an engaged, resilient workforce—one that grows with the company and drives our collective success.
At Kenco, we believe long-term success depends on investing in the growth and development of our people, which is why we provide a comprehensive set of learning opportunities for both individual contributors and leaders. All employees have access to training programs through self-paced e-learning, instructor-led courses, and structured programs, and include topics like: Delivering and receiving feedback Leading crucial conversations Facilitating training and knowledge-sharing Identifying and building on personal strengths Supporting new hires To date, Kenco boasts 192 distinct employee engagement-related impact plans. At some sites, there may be more than one initiative in action.
Leadership Development
Social Metrics: Performance & Progress
We are committed to developing our leaders and the future leaders of the organization. Our foundational programs Leadership Essentials and Next Level Leadership are designed to build core skills, while competitive development cohorts lasting one to three years deepen leadership capabilities and strategic impact. Additionally, frontline leadership development programs are available to support site-level leaders in building stronger teams.
Our 2024 Leadership Development Program graduates
Improvement from 3.94 in 2023
Improvement from 29.75% in 2023
Gallup Rating
Voluntary Employee Turnover
3.98
28.36%
For quite some time, Kenco has put community outreach at the forefront of our values. We’re dedicated to giving back to our community through both volunteer efforts and financial support.
*Bureau of Labor Industry Average for Warehousing and Storage October 2025 (NAICS Code 49311)
9.3
8.2
6.8
5.9
5.5
5.2
5.0
4.9
5.6
5.7
4.8
8.8
5.04
6.81
4.55
4.32
3.49
2.96
3.23
2.93
3.90
3.58
3.39
3.15
2.74
3.22
Kenco OSHA Incident Rate Vs. Industry
TRIR
NAICS Industry Average
10 9 8 7 6 5 4 3 2 1 0
2004
2006
2008
2010
2012
2014
2016
2017
2018
2019
2021
2020
2022
2002
For nearly a decade, Kenco has proudly partnered with United Way for its annual Day of Caring. In 2024, employees from Chattanooga, Tennessee carried on this tradition by spending the day volunteering at Reflection Riding Arboretum and Nature Center.
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Corporate
Operatives
Technicians
Professionals
Adminstrative Support Workers
First/Mid Offs & Mgrs
Exec/Senior Offs & Mgrs
55%
60%
27%
40%
41%
42%
66%
22%
45%
5%
20%
59%
23%
31%
2%
48%
52%
54%
26%
28%
17%
4%
12%
Operational
% Female
% BIPOC
0%
9%
38%
15%
49%
21%
16%
% Female 2024
% Female 2020
GOVERNANCE
Business ethics and integrity are essential to how we operate and build long-term relationships with our customers and partners. In 2024, we strengthened this commitment by updating and introducing key policies—including our Sustainability and Environmental Policy, Ethics and Honesty Code of Conduct, Sustainable Procurement Policy, and Supplier Code of Conduct. These updates underscore our commitment to fairness, transparency, and responsibility in every aspect of our business.
A resilient supply chain requires readiness for unexpected challenges. At Kenco, we integrate critical incident risk management into our daily operations, ensuring that our teams are trained and systems are tested to respond effectively to potential disruptions. Our dedicated risk management team supports our efforts through EH&S programs and training, comprehensive risk assessment and mitigation strategies, advanced security protocols, and site-specific business continuity plans. We also partner with third-party providers for disaster recovery and restoration when needed.
Protecting customer data is a critical element of trust in today’s supply chain environment. We actively monitor IT system performance and apply proactive safeguards to prevent, detect, and mitigate risks. Our approach combines robust policies, advanced cloud security, and role-based access controls (RBAC) with regular risk assessments and vulnerability scans. A cross-functional team oversees ongoing threats, while annual employee training and phishing simulations ensure our workforce remains vigilant. Together, these measures create a comprehensive framework for data privacy and security. Looking ahead, our team will continue their commitment to data security and privacy, and demonstrate to our customers, partners, and associates that safeguarding information is central to how we do business.
Governance for a Sustainable Future
Over the past year, we have made meaningful progress in advancing our sustainability strategy, refining our data, and identifying the areas where we can drive the greatest impact.
Looking forward, we are focused on building even greater transparency and accountability through initiatives that include:
Together, these steps will position us to reduce our environmental footprint, strengthen resilience, and create long-term value for our people, our customers, and our communities.
Completing Scope 3 emissions calculations by 2027
Conducting site surveys to establish baselines and share new ideas throughout the organization
Aligning climate risk assessment and disclosure with the TCFD framework
Pursuing SOC 2 certification
Establishing a 2025 water usage benchmark (to be completed in 2026)
Exploring innovative strategies, including the use of AI, to increase energy efficiency across our operations
© 2025 Kenco | 2001 Riverside Drive, Chattanooga, TN | KencoGroup.com
Kenco supplies integrated logistics solutions that include distribution, eCommerce fulfillment, comprehensive transportation management and material handling equipment services, and customized supply chain solutions – all designed for Operational Excellence. Kenco continues to be a leading 3rd party logistics provider in North America, building lasting customer relationships for over 75 years. Kenco’s focus is to support customers’ business needs through connected solutions and to redefine third-party logistics by offering innovative solutions.
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